# Alabama SB277: Unincorporated nonprofit associations; decentralized associations provided for Alabama SB277, Unincorporated nonprofit associations; decentralized associations provided for, is a 2026 Regular Session Senate bill sponsored by Lance Bell (Republican); status enacted, last action 2026-04-02 (Enacted) (as of 2026-10-19). - Canonical: https://policyrisk.com/state-bill/AL-SB277-2026rs - As of: 2026-10-19 - Plain-text twin of the page above; the HTML and this file carry the same facts. ## Facts - Bill: Alabama SB277 - State: Alabama - Session: 2026 Regular Session - Title: Unincorporated nonprofit associations; decentralized associations provided for - Status: enacted - Chamber: Senate - Introduced: 2026-02-10 - Last action: 2026-04-02, Enacted - Sponsor: Lance Bell (Republican) - Cosponsors: 0 - Subjects: Businesses & Financial Institutions - Touches household money: no - Roll calls: 6 (303 yes, 11 no in all) - Economic provisions PRIA read: 13 ## Summary No summary available. ## Bill overview: provisions PRIA read - Digital nonprofits can govern through software: benefit, low. Beginning October 1, 2026, digital nonprofits can run some or all governance through shared digital ledgers and smart contracts. Their governing rules can set public or private access, member privacy, and votes on software, protocol, or rule changes. Groups can use reasonable algorithms to reach ag… - Liability protections for digital nonprofit members: mixed, medium. Beginning October 1, 2026, a digital nonprofit is legally separate from its members for contract and injury claims. Members, administrators, and management participants are not personally liable solely because of their roles; a group judgment does not automatically bind them. The group and its part… - Digital nonprofits can cover legal costs: mixed, low. Beginning October 1, 2026, digital nonprofits can repay authorized, reasonable work expenses and cover members' or administrators' association-related liabilities. Administrators must meet the law's duties to qualify, and governing rules can broaden or limit liability coverage. Advance payment or r… - Closing digital nonprofits must settle debts: mixed, low. Beginning October 1, 2026, dissolved digital nonprofits continue only to close their affairs, settle claims, and discharge debts. Other law controls required transfers to people or groups with similar nonprofit purposes; otherwise, governing rules control remaining property. Without applicable gove… - Court access and service for digital nonprofits: mixed, low. Beginning October 1, 2026, digital nonprofits can sue, be sued, and join court, government, arbitration, mediation, and related proceedings in their own names. Member claims require a member entitled to sue, a claim tied to the nonprofit purpose, and no required individual participation. Groups can… - Digital nonprofit members can transfer interests: mixed, low. Beginning October 1, 2026, a digital nonprofit's governing rules control how people join, leave, or lose membership. Without admission rules, buying or taking ownership of a membership interest makes someone a member. Without discipline rules, members must approve suspension, dismissal, or expulsio… - Digital nonprofit profits face payout limits: mixed, low. Beginning October 1, 2026, digital nonprofits can earn profits, but must use or reserve them for their shared nonprofit purpose. Payments of money or property to members and administrators are generally barred without explicit authorization in governing rules. Allowed payments include reasonable pa… - Digital nonprofits can continue or change form: mixed, low. Beginning October 1, 2026, digital nonprofits continue indefinitely unless their governing rules provide otherwise. Dissolution follows those rules, member approval when no method exists, or a court order. Below 100 members, a group automatically becomes an Alabama unincorporated nonprofit associat… - Digital nonprofits can limit administrator damages: mixed, low. Beginning October 1, 2026, digital nonprofits can limit or remove administrators' liability for money damages to the group or members. The limit must appear in a record within the governing rules. It cannot cover improper financial benefits, willful or intentional harm, intentional criminal-law vio… - Member voting rules for digital nonprofits: mixed, low. Beginning October 1, 2026, default rules require a majority of participating voting interests to approve major digital nonprofit decisions. These include member discipline, administrator selection or dismissal, governing-rule changes, property sales or other transfers, and dissolution. Votes also c… - New legal status for digital nonprofits: mixed, low. Beginning October 1, 2026, Alabama provides a separate legal framework for digital nonprofit associations with at least 100 members. Members must join by mutual consent for a shared nonprofit purpose, which can include running a digital ledger network. The group must choose this framework and canno… - Record access and privacy for nonprofit members: mixed, low. Beginning October 1, 2026, digital nonprofit members and administrators can request electronic activity and financial records on reasonable notice. Information must matter to their rights or duties; the group need not provide information already available to the requester. Reasonable confidentialit… - Property powers and filings for digital nonprofits: mixed, low. Beginning October 1, 2026, digital nonprofits can own, borrow against, and transfer property, or receive it through wills, trusts, and contracts. Their rules can limit these powers; Alabama property powers do not require another connection to the state. Real estate transfers require a recorded auth… ## Sponsors and cosponsors - Sponsor: Lance Bell (Republican), Senate ## Roll call votes | Date | Chamber | Motion | Result | Yes | No | Other | | --- | --- | --- | --- | --- | --- | --- | | 2026-03-12 | House | Motion to Read a Third Time and Pass - Adopted Roll Call 887 | pass | 82 | 7 | 16 | | 2026-03-12 | House | Third Reading in Second House | pass | 93 | 0 | 12 | | 2026-02-24 | Senate | Bell motion to Adopt - Adopted Roll Call 559 | pass | 32 | 1 | | | 2026-02-24 | Senate | Third Reading in House of Origin | pass | 32 | 1 | | | 2026-02-24 | Senate | Bell motion to Adopt - Adopted Roll Call 560 | pass | 32 | 1 | | | 2026-02-24 | Senate | Motion to Read a Third Time and Pass as Amended - Adopted Roll Call 561 | pass | 32 | 1 | | ## Actions (24) - 2026-04-02: Enacted (Senate) - 2026-03-17: Signature Requested (House) - 2026-03-17: Delivered to Governor (Senate) - 2026-03-16: Enrolled (Senate) - 2026-03-12: Third Reading in Second House (House) - 2026-03-12: Motion to Read a Third Time and Pass - Adopted Roll Call 887 (House) - 2026-03-12: Ready to Enroll (Senate) - 2026-03-12: Ready to Enroll (Senate) - 2026-03-05: Read for the Second Time and placed on the Calendar (House) - 2026-03-04: Reported Out of Committee Second House (House) - 2026-02-25: Read for the first time and referred to the House Committee on Economic Development and Tourism (House) - 2026-02-25: Pending Committee Action in Second House (House) - 2026-02-24: Third Reading in House of Origin (Senate) - 2026-02-24: Fiscal Responsibility and Economic Development 2nd Amendment Offered (Senate) - 2026-02-24: Fiscal Responsibility and Economic Development 1st Amendment Offered (Senate) - 2026-02-24: Bell motion to Adopt - Adopted Roll Call 559 (Senate) - 2026-02-24: Bell motion to Adopt - Adopted Roll Call 560 (Senate) - 2026-02-24: Motion to Read a Third Time and Pass as Amended - Adopted Roll Call 561 (Senate) - 2026-02-19: Read for the Second Time and placed on the Calendar (Senate) - 2026-02-18: Fiscal Responsibility and Economic Development 1st Amendment (Senate) - 2026-02-18: Fiscal Responsibility and Economic Development 2nd Amendment (Senate) - 2026-02-18: Reported Out of Committee House of Origin (Senate) - 2026-02-10: Read for the first time and referred to the Senate Committee on Fiscal Responsibility and Economic Development (Senate) - 2026-02-10: Pending Committee Action in House of Origin (Senate) ## Bill text - As Introduced: [PDF](https://alison.legislature.state.al.us/files/pdf/SearchableInstruments/2026RS/SB277-int.pdf) - Engrossed: [PDF](https://alison.legislature.state.al.us/files/pdf/SearchableInstruments/2026RS/SB277-eng.pdf) - Enrolled: [PDF](https://alison.legislature.state.al.us/files/pdf/SearchableInstruments/2026RS/SB277-enr.pdf) ## Related bills - HB67: Voter Information; limit cost of reproducing voter registration list; crime for misuse of personal voter information; created (enacted) - SB154: State employees, cost-of-living increase for fiscal year beginning October 1, 2026 (enacted) - SB165: Elections; municipal elections, to set qualification fee amounts, to require indigent candidates to submit documentation for fee exemption (enacted) - HB317: Firefighter distinctive license plate; fire chaplains included, penalty for violations provided for (enacted) - SB272: Open Records; use of public records relating to schools for certain solicitation purposes prohibited; redaction of certain information relating to financial tr… (enacted) - SB190: Sales Tax; to exempt Precision Ocular (enacted) ## Sources - [As Introduced (PDF)](https://alison.legislature.state.al.us/files/pdf/SearchableInstruments/2026RS/SB277-int.pdf) - [Engrossed (PDF)](https://alison.legislature.state.al.us/files/pdf/SearchableInstruments/2026RS/SB277-eng.pdf) - [Enrolled (PDF)](https://alison.legislature.state.al.us/files/pdf/SearchableInstruments/2026RS/SB277-enr.pdf) ## Related - [HB67: Voter Information; limit cost of reproducing voter registration list; crime for…](https://policyrisk.com/state-bill/AL-HB67-2026rs) - [SB154: State employees, cost-of-living increase for fiscal year beginning October 1, 2…](https://policyrisk.com/state-bill/AL-SB154-2026rs) - [SB165: Elections; municipal elections, to set qualification fee amounts, to require in…](https://policyrisk.com/state-bill/AL-SB165-2026rs) - [HB317: Firefighter distinctive license plate; fire chaplains included, penalty for vio…](https://policyrisk.com/state-bill/AL-HB317-2026rs) - [SB272: Open Records; use of public records relating to schools for certain solicitatio…](https://policyrisk.com/state-bill/AL-SB272-2026rs) - [SB190: Sales Tax; to exempt Precision Ocular](https://policyrisk.com/state-bill/AL-SB190-2026rs) - [Alabama bills](https://policyrisk.com/states/alabama/bills) - [Alabama state hub](https://policyrisk.com/states/alabama) - [All state legislation](https://policyrisk.com/state-bills) Source: PRIA, https://policyrisk.com/state-bill/AL-SB277-2026rs (as of 2026-10-19).